EURCAD – Capped by Marabuzo line
14th July 2016
Our Trend Table longer term view on EURCAD turned to Bearish at the end of February. Spot prices moved below the 21 week moving average confirming a similar break in the RSI indicator the preceding week.
EURCAD fell by almost 4 big figures to April’s 1.4182 low, near the bottom of a negative Keltner channel.
Price action since has seen modest profit taking followed by a broad consolidation but the key elements in subsequent trading has been a failure to maintain levels beyond the mid-point of the Keltner channel or to test the key moving averages in spot EURCAD or the RSI indicator.
Significantly the last 5 weeks have shown rallies to be increasingly limited – capped, on a closing basis, by a weekly Marabuzo line (1.4542).
This maintains the negative bias for our signals for sentiment with the focus on April’s 1.4182 low then a revised Fibonacci extension point to 1.4099.
